Over the last few years, plastic cash is becoming a popular option over physical cash. This also holds true when you are going on a foreign trip. In this case, you can always opt for a forex card. But what is a forex card? A foreign exchange card, popularly known as forex card allows you to make transactions in forex currency with the protection against currency conversion. Plenty of financial experts are recommending travelers to opt for this banking card when it comes to dealing with foreign currency as it offers plenty of benefits and helps you save more in the long run. Here are a few reasons as to why you should opt for this card today:
Forex cards have been widely associated only with luxury outlets such as high-class restaurants or shopping malls. However, of late, it is slowly being accepted even for small transactions such as travel and grocery purchases. Additionally, it also depends on the destination you are traveling to. If you are visiting a single country, it is best if you invest in a forex card with a single destination currency. With multiple currencies, you can opt for forex cards that offer you multiple currencies with additional perks.
Safer to carry:
From a security point of view, any banking card mitigates the risk of financial loss. This can occur in the form of theft or even the loss of your wallet. In this case, just like any other banking card, you will need to get your card hot listed. This ensures that your amount remains safe. At the same time, you can opt for a secondary backup card to use for such occasions. This secondary card can be activated when you contact the lender.
Hedge against currency fluctuation:
One of the main drawbacks of using your ordinary banking card for foreign expenditures is the currency fluctuations. As the currency conversion often takes place in real time, it is done with the currency conversion value of that time. Based on the volatile conditions of the market, there is a high chance you may face a loss. With a forex card, you have the added advantage of hedging against these fluctuations. This isdue to the fact that, the value of the forex amount loaded is determined based on the exchange rate of the day. This value remains fixed throughout the tenure of the card being used. Therefore, a customer can fix the forex value on the card, when the rates are most favorable.
Cheaper than buying currency
As compared to getting physical cash, opting for a forex card is cheaper. This is due to the fact that there is a considerable difference in the cost dynamics and logistics involved in both options.
Now that you are aware of what is a forex card, you can contact your local financial institute or bank to get this card for your next travel trip abroad.